AUBURN — Bedard Pharmacy could get a six-year tax incentive to help it relocate to the old Gooseberry Barn site on Minot Avenue.

City officials finished work on a proposed six-year tax increment finance district that would return $202,240.91 of the projected $505,602 in property taxes the pharmacy would pay through 2017.

It’s just enough to help the company make the transition successfully.

“It’s clear from the bank’s perspective the company needed just a little help to get financing,” Economic Development Director Roland Miller said Thursday.

Councilors are scheduled to vote on the tax incentive plan at a special meeting Tuesday, Sept. 7.

The city took over the 3.8 acre lot in 2007, paying $625,000. Councilors approved the sale of it Aug. 16 for $468,000. The company plans to relocate its corporate headquarters to Auburn, adding a small retail pharmacy store on the first floor and an area to customize prosthetics and medical equipment.

The plan preserves trees and landscaping along Fairview Avenue, bringing all traffic onto the site from Minot Avenue. The developer plans to build a new entrance that will  be shared with nearby Fairview Elementary.

According to the TIF agreement, the pharmacy would continue to pay all property taxes on the $468,000 base value for the life of the agreement.

The company estimates the new buildings, parking lots and site improvements will add $4 million in value. Under the agreement, 40 percent of that new value would be returned to Bedard — between $32,000 and $35,000 each year.

The agreement leaves room for the company to add second and third phases. The second phase would include a separate retail space. The third would add 16,000 square feet to the first building.

“If the company is successful, we would hope the later phases would happen,” Miller said.

If all phases were built, it would add $8 million in new value to the site — increasing total property taxes to $849,000 through 2017. Under the agreement, the city would keep $509,000 of that and return 40 percent — $339,760 — to the company.

[email protected]

Only subscribers are eligible to post comments. Please subscribe or to participate in the conversation. Here’s why.

Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.